Nearly a third of all businesses across the West Midlands are seeking to recruit, according to a new survey, despite slowing growth.

Greater Birmingham and Solihull Local Enterprise Partnership said there was further good news around the corner for a region battling against high unemployment, after the number of people out of work fell by 18,000 in the last quarter.

However, statistics in the second quarterly economic survey of 2012 conducted by Birmingham Chamber of Commerce Group in conjunction with the LEP indicated a slowing in growth.

The domestic market for manufacturers remained static with 41 per cent, the same as the previous quarter, reporting an increase in sales but the number with fuller order books dropped to 38 per cent from 41 per cent.

The export market showed a similar picture with 38 per cent reporting a rise, down from 41 per cent, while 34 per cent reported increased orders, down from 42 per cent. A total of 27 per cent said they had increased their investment in plant, machinery and equipment, against 17 per cent in the previous quarter.

LEP chair Andy Street said: “The LEP area appears to be more than holding its own against the backdrop of a tough economic outlook.

“Stronger investment in machinery, plant and training are all good indications that our companies remain optimistic about future growth.

‘‘And it is especially pleasing to see that more businesses are looking to take on additional staff.”

“This is a trend we need to build on if we are to meet our aim of creating 100,000 new private sector jobs by 2020.”

Researchers found that although confidence that they would increase turnover and profitability among manufacturers had dipped slightly, most had revised upwards plans for investment.

Exchange rates and competition remained the biggest areas of concern for manufacturers.

There was a similar picture among service sector companies, although domestic business had increased while exports were down.

But again there was good news on the jobs front with 31 per cent, up from 30 per cent in the previous quarter, saying they were attempting to recruit.

Michael Ward, president of Birmingham Chamber, said: “The figures do show the tremendous resilience of business in the Midlands and they are to be congratulated on their efforts to maintain staffing levels confidence in these difficult times.

“The Government must do all it can to help businesses export more. The West Midlands increased its exports by around £1 billion over the past 12 months and this should be applauded.”